Primus Valor has further expanded the growth trajectory of its ImmoChance Deutschland 14 Renovation Plus (ICD 14 R+) fund with the acquisition of a residential property portfolio in Bavaria. The transaction comprises 344 residential units with a total area of nearly 24,000 square metres. The locations of the acquired properties include Aschaffenburg, Erlenbach, Kitzingen, Nuremberg and Schweinfurt. The total investment, which also includes ancillary acquisition costs and planned renovation measures, amounts to approximately EUR 38 million. The focus of this acquisition is exclusively on residential properties; commercial units are not included in this portfolio.
The portfolio was acquired with a low vacancy rate and a stable tenant structure. This already ensures a solid basis for the further development of the properties at the time of acquisition. Furthermore, individual properties with potential for future privatisation have been identified. A key component of the value creation strategy involves planned renovation and modernisation measures. Over 20 percent of the total investment is earmarked for this purpose, underscoring the consistent application of the fund's Renovation Plus strategy in this acquisition.
Strategic Objectives and Market Context
With its Renovation Plus strategy, Primus Valor aims to preserve and upgrade the quality of living space, as well as to reduce the energy consumption of properties. The current acquisition illustrates the utilisation of opportunities presented by the prevailing market environment. Property prices in Bavaria are currently more moderate than a few years ago, enabling investments that would have been more difficult to realise previously. Additionally, Bavaria's relatively low real estate transfer tax of 3.5 percent compared to other German states further enhances the region's attractiveness for such investments.
Primus Valor benefits from its familiarity with some of the acquired locations from previous funds. This local experience facilitates precise assessment of micro-locations and shortens operational start-up processes. Combined with established structures and familiar partner companies, this supports the swift implementation of planned renovation and modernisation measures. With this acquisition, the fund's total investment volume increases to nearly EUR 85 million, and the number of managed units rises to a total of 727. The fund thus continues its strategy of utilising the current market phase for counter-cyclical acquisitions.
Fund Strategy and Further Development
The concept of ICD 14 R+ builds upon the established Renovation Plus strategy, which has already been successfully implemented in earlier funds. The aim is to improve the energy efficiency of buildings, enhance living quality, and unlock further development potential within the existing portfolio. The fund remains in its placement phase until the end of 2026, which allows for further acquisitions in line with the described strategy.
